Credit scoring myths

Closing an account that is disastrous will help my credit score.

False.  Closing an account will never help your credit score; in fact it could do the opposite and actually harm it!  It is true that having too many open accounts can damage your score, but once you have opened them there is nothing that you can do, the damage has been done.  Instead, why not try to pay off your debt, something that can improve your score.

Checking up on my credit score can harm it.

False.  Applying for credit is generally what harms your score.  Ordering a copy of your own credit report or credit score doesn’t count.  If you are still worried about this then there are ways of minimising the damage from credit inquiries, such as making sure when looking for a mortgage / loan that you do so in a short period of time as one inquiry can knock off up to 5 points concerning your score.

Credit counselling can affect my score just as much as bankruptcy.

False.  Credit scores are not affected by credit counselling, as these people are not considered likely to default on their mortgage any more than the next person.  However, you must be aware that if you are having credit counselling then your current lender may report your payments as being late because you are not paying off what you originally owed or because your credit counsellor isn’t sending your payments in on time.  Remember that late payments do damage your credit score.

My credit score isn’t the only score I need to check.

False.  You need to check a multitude of things in order to keep tabs on your accounts, such as checking for any errors on documents or statements and changing them, making sure you have the correct payment dates and sticking to them and applying for credit as little and un-often as possible.